Foreign executives working in South Korea encounter a diverse range of opportunities and challenges. Among the various aspects that require attention, understanding the intricacies of severance pay entitlement under Korean labor law is paramount. One of the key questions that often arise is whether foreign executives are entitled to legally mandated severance pay in South Korea. In this article, we will delve into the complexities surrounding severance pay for foreign executives, shedding light on the legal framework and crucial considerations. (more…)
Korean License Agreements 101: Everything You Need to Know Before Signing
Are you a company looking to expand into the Korean market? If so, you’ll need to be familiar with Korean license agreements. These agreements are critical for protecting your company’s intellectual property and ensuring a smooth entry into the Korean market. But navigating Korean laws and regulations, understanding the different types of license agreements, and negotiating key provisions can be a daunting task. That’s why we’ve put together this comprehensive guide to Korean license agreements 101.
In this article, we’ll explore the different aspects of Korean License Agreements that foreign companies need to know before signing a Korean license agreement. This includes the key Korean laws and regulations affecting license agreements, the differences between exclusive and non-exclusive license agreements, the most important provisions in a Korean license agreement, and how to protect your intellectual property in the Korean market. (more…)
Is the Korean Data Protection Law Applicable to Foreign ICT Service Providers?
Before its major amendment in 2020, the data protection and privacy matters of ICT service providers were regulated by the Act on the Promotion of Information and Communications Network Utilization and Information Protection (“Network Act”). The data protection and privacy clauses in the Network Act, however, were later integrated into the Personal Information Protection Act (‘PIPA’) in 2020 which is the current data protection and privacy act in South Korea.
Although the PIPA doesn’t have an explicit clause, it is a general view of a Korean regulatory agency that the PIPA is applicable to any foreign business entity operating outside of Korea, so long as their businesses target Korean customers. (more…)
Starting a Korean Subsidiary or a Startup: Stock Company and LLC as the Business Entity
When you start a business in Korea, whether it is a Korean subsidiary or a startup, choosing the right business structure has huge implications for its operation, liability, and future investment.
In the U.S., a joint stock company(C-Corporation) and a limited liability Company(LLC) are often used as business entity by foreign investors and startups. The same applies in South Korea.
So, in this article, our Korean business lawyer explains these two entities with more emphasis on the Korean LLC, which is called a Yuhan Chegim Hoesa(YCH).
Divorcing in Korea as Foreigners: The Ultimate Guide
We have been frequently asked about how to get divorced in Korea as foreigners. In this article, our Korean divorce lawyer explains the most essential information about Korean divorce law and practices.
Can Foreigners Get a Divorce Decree from the Korean Court?
Korean divorce law doesn’t treat foreigners differently. Foreign spouses who married Korean citizens and even foreign spouses who married non-Korean citizens can divorce in Korea.
One thing to note is the Korean courts’ rule of jurisdiction which applies to international divorce. Generally speaking, the Korean court will accept a divorce filing when the other spouse, i.e. the respondent, resides in Korea.
There is an exception to this. In certain situations, the foreign spouse can get a divorce decree from the Korean court even if the other spouse does not reside in Korea.
Introduction to the Korean Inheritance Law
(Last updated on February 27, 2024) Under the Korean inheritance law, the inheritance comes to fruition immediately when a person is deceased. The Korean inheritance law, Part V of the Civil Act, provides who shall become the inheritor and beneficiary of the property of a deceased person, i.e. estate.
The inheritor and beneficiary, however, shall not always take everything from the estate. There are separate rules and restrictions on the distribution of the estate in South Korea.
In this article, we will explain to you the basic rules and practices of inheritance in Korea.
(more…)A Guide to Severance Pay under Korean Law
There was a news report that more than half of the foreign workers in South Korea are not aware of the fact that they can claim for the severance pay. Yes, Korean labor law recognizes severance pay. It is being regulated by the Guarantee of Workers’ Retirement Benefits Act(“GWRBA”). In this article, we will provide you a guide to the general ideas of how severance pay works, who gets it, and how much in Korea.
Recognition and Enforcement of Foreign Judgments in South Korea
Let’s say you obtained damages recovery judgment from a U.S. court against a Korean residing in the states. Soon after your excitement for the winning judgment, however, you found he had no assets in the states to fulfill your judgment. This could also happen in litigation between U.S. citizens in a U.S. court where the losing defendant moved to South Korea and there are no assets left in the U.S. You might have spent quite a large amount of legal fees to win the judgment already, but you think your judgment is now in great peril to become useless. This horrible situation might frustrate you.
But, don’t worry too much. You can enforce your duly obtained U.S judgment in South Korea. If you are sure the defendant has enough assets to cover your claims in the judgment and your legal fees, you are encouraged to file an enforcement order for a foreign judgment to a Korean court.
Korean Foreign Direct Investment Lawyer Explains: Requirements & Process of FDI under Korean Law
South Korea has a special investment regime which is called “Foreign Direct Investment(FDI)”. This was established for the purpose of promoting foreign investment. If the foreign investor meets the thresholds under the FDI regulation, it provides many benefits and incentives. (more…)
Process to Withdraw from Korean Market: Company Dissolution and Liquidation in Korea
You had started a business in Korea by setting up a business entity under Korean law. It is natural that, at some point, you might consider withdrawing from the Korean market and getting your investment and profits back to your home country. You might also want to close the business in Korea and liquidate all debts and liabilities. If that is the case and a stock company or LLC is the legal form of your Korean business entity, subsidiary, or affiliate, here is what you should know about the company dissolution and liquidation process in Korea.